Restoration of pension to Defence Service Personnel who had drawn lump sum payment on absorption in Public Sector Undertakings/ Autonomous Bodies — delinking of qualifying service of 33 years for revised pension with effect from 1.1.2006

No.1(04)/2007/D(Pen/Pol)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare

New Delhi, Dated: 20th June,2018

To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject: Restoration of pension to Defence Service Personnel who had drawn lump sum payment on absorption in Public Sector Undertakings/ Autonomous Bodies — delinking of qualifying service of 33 years for revised pension with effect from 1.1.2006 reg.

Sir,
The undersigned is directed to refer to this Ministry’s letter No.1(04)/2007-D(Pen/Policy) dated 18th Sept,2017 under which orders have been issued for restoration of full pension for those Defence pensioners who had drawn lump sum payment on absorption in Public Sector Undertaking/Autonomous Bodies after expiry of commutation period of 15 years from the date of payment of 100% lump sum amount. The said order also allows revision of pension in accordance with the instructions issued from time to time in implementation of the recommendations of the Pay commissions including Seventh CPC.

2. Instructions were issued by this Ministry vide letter No 1(2)/2016- D(Pen/Pol.) dated 30.9.2016 to the effect that w.e.f.1.1.2006 revised consolidated pension and family pension of pre-2006 Armed Forces pensioners shall not be lower than 50% and 30% respectively of the minimum of the pay in the Pay Band plus Grade pay corresponding to the pre–revised scale from which the pensioner had retired/ discharged/ invalided out/ died including Military Service Pay and ‘X’ Group pay, if any, without pro rata reduction of pension even if they had rendered qualifying service of less than 33 years at the time of retirement.

3. Matter has been considered by the Government and it has been decided that while determining the revised pension of above said category of absorbee pensioners/ family pensioners with effect from 1.1.2006, the pension/ family pension shall also be revised in accordance with the provisions contained in this Ministry’s letter dated 30.9.2016 referred above.

4. The revised pension in terms of this order shall be revised by respective Pension Sanctioning Authorities suo-moto by issuing Corrigendum PPOs in all affected cases. No application in this regard shall be called for either from the pensioners or from the PDAs concerned.

5. This issues with the concurrence of the Finance Division of this Ministry vide their ID No.31(8)/09/Fin/Pen dated 23-05-2018.